SPY420.86+5.94 1.43%
DIA338.78+5.82 1.75%
IXIC14,141.48+111.10 0.79%

Hanesbrands Outlines Guidance Below Street Expectations Even as First-Quarter Results Top Views

05/11/2021 08:52

12:47 PM EDT, 05/11/2021 (MT Newswires) -- Hanesbrands (HBI) issued downbeat guidance for the second quarter and full year even after results for the just-ended period came in above Wall Street's views.

The clothing company expects adjusted earnings in the current three months of $0.37 to $0.40 a share, beneath the consensus on Capital IQ for $0.42 a share. Sales are pegged between $1.56 billion to $1.59 billion in the second quarter, also less than the Street's view, which is for $1.61 billion.

"While the company expects a modest amount of sales from one-time benefits, including retailer restocking and stimulus-related spending, to continue into the second quarter, the benefit is expected to be significantly lower than first-quarter levels," the company said in a statement on Tuesday.

The company also anticipates full-year 2021 adjusted EPS of $1.51 to $1.59 and sales of $6.2 billion to $6.3 billion. The Street expects adjusted EPS of $1.61 and sales of $6.71 billion.

Winston-Salem, North Carolina-based Hanesbrands also on Tuesday reported adjusted EPS of $0.39 in the first quarter, up from $0.07 a year ago and ahead of the Capital IQ consensus for $0.26. Sales rose to $1.51 billion from $1.2 billion. Wall Street was looking for $1.5 billion.

"Our strong first-quarter results showed growth across all business segments," said Chief Executive Steve Bratspies. "Our global online sales grew more than 80% as we focus on empowering consumers to shop when, where and how they want to shop."

US innerwear sales climbed 35% to $570.4 million due to point-of-sale growth and market share gains. US activewear sales surged 26% to $364 million as Champion sales rose 34% and other activewear brands increased 16%.

International revenue jumped 18% to $506.3 million, driven by growth in the Americas, Australia and Europe despite a decline in the Asia Pacific.

Under a three-year growth plan, Hanesbrands said in a separate statement that it expects revenue to increase to $7.4 billion and operating margins to expand to 14.3% by 2024 from the company's midpoint 2021 guidance of $6.25 billion and 13.3%, respectively.

Price: 18.76, Change: -3.14, Percent Change: -14.32